House Bill No. 379, introduced by Representative Wright, amends existing property insurance laws in Louisiana to establish conditions under which mandatory binding arbitration can be required. The bill modifies R.S. 22:868 by allowing exceptions to the prohibition against requiring insurance contracts to be governed by the laws of another state. It introduces a new section, R.S. 22:868.1, which outlines specific requirements for insurers wishing to implement mandatory binding arbitration. These requirements include that the arbitration provisions must be included in a separate endorsement, the policy must offer a premium discount for arbitration, and the policyholder must sign a form acknowledging the rights they forfeit by agreeing to arbitration.

Additionally, the bill stipulates that arbitration must occur within the state at a location corresponding to the policyholder's premises, and the arbitrator must be a licensed attorney in Louisiana. The arbitrator is empowered to issue judgments that may include penalties and attorney fees. The arbitration process will be governed by the Louisiana Binding Arbitration Law, and the commissioner of insurance is authorized to create rules to enforce these provisions. Overall, the bill aims to provide a structured approach to arbitration in property insurance while ensuring that policyholders are informed of their rights.

Statutes affected:
HB379 Original: 22:868(A)
HB379 Engrossed: 22:868(A)